What You Should Know Before Selling Your Rental Property

What You Should Know Before Selling Your Rental Property

Don’t Learn The Hard Way

When it comes to selling rental properties, there are few ways to go about it; what’s important is that you don’t end up wasting your time by making common, simple mistakes. The following writing is by no means exhaustive, but does represent some considerable aspects of the process you should take into consideration before you list your rental property for sale.

You Need To Price Strategically

What you list a property for is likely not going to be what you sell it for. On car lots, new vehicles are listed one way, but this is seldom what savvy buyers pay. Nobody wants a car at sticker price. There is always wiggle room. All you’ve got to do is put pressure on the salesman.

Well, when it comes to selling a rental property, you can expect buyers to search for means by which they can talk you down from your listed price. What you should do is have the property evaluated, and list it as high as you can competitively, expecting to get less than that when all is said and done. Be appropriately strategic, and find professionals you trust with whom you can consult.

Understand The Legal Climate

Sometimes there will be legal restrictions in place which may prevent you from selling a property for one reason or another. For example, if you own a property in a section of town that is under development, your home may represent something historic, or it may represent a development obstacle.

Either way, political interests could influence those with whom you work to sell. It’s best for you to understand what legal restrictions or allowances silhouette your property before you officially list it in the market, so you know what your rights are, and what to look for.

Ensure Tenants Remain When You List The Property

If you clear a property of tenants before listing it, then it’s just going to stagnate, losing you money as you seek a buyer. You don’t have to evict those living in a given property once the sale happens; you can give them a few weeks to remove themselves, and then put a week’s cushion between their exit and your new renter’s entry in order to clean up the place.

Sometimes you’ll want to lease the property to short-term renters during such an interim. Tools like Rentbelly can be essential for property owners, managers, and other real-estate related professionals in helping you manage rental properties in this way.

Market To Investors And Homeowners

Sometimes you can sell a property to an investor who is looking to develop the land for some secondary use. This was briefly explored under the “legal climate” section of this writing. Local politics will sometimes make one property less valuable than is expected, or more valuable. So don’t just market to investors or homeowners separately; cross-pollinate, if you will, your outbound marketing.

Improvements Must Be Made Strategically

Last but not least, you can use some renovations to expand listing price; but you’ve got to be careful. Totally redoing the kitchen can be costly, and may not bring much to the value of the property. However, a solar energy system of 3.2 kWh can be installed for around $5k if you put it up yourself, and you’ll increase property value in places like California $20k while receiving a tax break, and having a new selling point for potential buyers: decreased energy costs.

Green augmentations are recommendable. Additionally, a DIY deck can be installed pretty cost-effectively, and look quite professional if you take your time and do the work right. Be strategic. If you can find a way to increase property value through renovation without losing money, it may be worthwhile. You can get yourself in trouble, though; so take your time and make the right choice.

More Successful Selling

If you’re careful to renovate strategically, market to more than one type of prospective buyer, keep tenants in your property while it’s listed, know the legal climate in your area, and price things strategically, you’ll likely do better as you go about selling your rental property.

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